CRYPTO CRIME | The United Kingdom Regulatory Watchdog Carries Out First Crackdown on Illegal P2P Crypto Trading

The Financial Conduct Authority (FCA) of the UK says it carried out its first coordinated crackdown on illegal peer-to-peer (P2P) crypto trading by raiding eight sites across London in a joint operation with law enforcement and tax authorities.

The watchdog said it worked alongside HM Revenue & Customs and the South West Regional Organised Crime Unit to inspect premises suspected of operating unregistered crypto trading services, issuing cease-and-desist notices at each location.

Evidence gathered during the raids is now supporting multiple ongoing criminal investigations, the regulator added.

Peer-to-peer (P2P) crypto trading, where users transact directly without intermediaries, requires registration under Britain’s anti-money laundering rules. However, the FCA said no such traders are currently registered in the country, rendering the activity illegal.

Authorities said the crackdown aims to prevent unregulated trading channels from being used to move and conceal illicit funds, warning that such activity poses a financial crime risk.

Steve Smart, executive director of enforcement and market oversight at the FCA, said:

“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. We will use our powers and work with partners to disrupt them.

Consumers should protect themselves by only dealing with firms registered with the FCA and by remembering that crypto remains a high risk investment.”

The action marks the FCA’s first enforcement operation specifically targeting peer-to-peer crypto trading and signals a broader push to tighten oversight of the sector as the UK moves toward a more comprehensive regulatory framework.

Stay tuned to BitKE for the latest crypto law enforcement updates across Europe.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_________________________________________